Are you financially prepared for the HolidayShopping Season?

Will you be making your purchases with cash orcredit?

Do you have a planned amount of money you will bespending on gifts?

If you owe $5,000 of more on your credit card orknow someone who does, who only pays the minimumpayment each month, you are not alone. The levelsof consumer debt are increasing rapidly around theworld.

A Debt is Not Just for Christmas

Christmas is the time of year when many consumersfall into the trap of spending too much money onexpensive Christmas gifts. Most of these purchasesare made on credit cards rather than using cash.This means these consumers often end up with largecredit card debt in the New Year. The New Year isalso the time when bills for other expenses, suchas holidays, school fees and taxes come due.

Credit cards are an expensive convenient source ofmoney and many people don’t realize just howexpensive they can be. Remember gifts purchasedon your credit card that you will not be paying infull, will become a debt. This debt will be withyou long after Christmas is gone. The mostdamaging part of this process is the interest youpay on your holiday purchases over time will bemore than the cost of the gift. This interestpayment you are making will also become someoneelse’s investment return.

Tips to Avoid the Post-Holiday Credit Card Blues

1. Make a budget for Christmas spending - add 20%to the amount and stick to that number.

2. Write a list of everyone you plan to buypresents for and the amount of money you canafford to spend on each person’s gift.

3. Pay for presents using cash or lay-away ratherthan credit cards - if you have to use creditcards use only one.

4. Use a card with the lowest interest rate andcredit only what you are able to pay off in onepayment or within three months.

5. Give yourself time to shop - avoid last minuteimpulse buying of whatever you can get your handson.

6. Write down everything you buy for the seasons,food, decorations, cards etc, and their cost -keep a running total.

7. Consider opening a Christmas Savings Account,so that you will be better prepared next year -for $10 per week, you will be over $500 ahead ofthe game next Christmas.

8. Gather all of your bills and obligations in oneplace and write down what you owe, to whom and atwhat interest rate - Now! Be complete and honestwith yourself.

Get a Jump Start on Holiday Planning for Next Year- Invest in Yourself!

Make a present to yourself this Holiday Season byinvesting in yourself - eliminate your debts andstart your wealth creation plan.

1. Take any "downtime" during the holidays to makea list of your financial goals for the next year,two years after that, then five years and longer.

2. Add up household expense budget for this yearand add 5% to that amount. Start a monthly programto set aside 10% of the amount for the next 10months starting in February of 2005.

3. Read a self-improvement book such as "TheAutomatic Millionaire" by David Bach.

4. For some people depression comes with theholidays - tame the depression with the knowledgethat you can make 2006 a more fulfilling andenjoyable year financially.

5. Take time to assess how financially secured youare - review your insurance needs, emergency fund,wills and overall debt and wealth balance.

Real Worth

Remember your Real Worth is not only measured bythe material gifts you give.This Holy Season is aprofound and powerful timeto commit yourself tonew beginnings, to startnew practices and tochoose what you want yourfinancial life to be inthe coming year.

Very few people choose financial clarity as one oftheir new practices. Plan for your expression oflove not only through gift giving to others, butalso a gift to yourself for a secured FinancialFuture. Make a painless New Year’s resolution thatwill give you the "Holiday Feeling Financially"for many years.

Copyright 2005 Joan Peterkin. All rightsreserved.

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